Author: schltd21@uwgb.edu

TASC Payment Cards Issued due to Upcoming Expiration Dates

The Department of Employee Trust Funds (ETF) has indicated that participants in the Health Savings Accounts, Flexible Spending Accounts, and Commuter Fringe Benefit Accounts may have received a new TASC debit card if their TASC card was set to expire. TASC’s system automatically generates new cards 30 days prior to the expiration date. TASC has indicated that they’re not able to put a stop to issuing new cards since it’s an automated process.

If you are questioning why you received a new TASC FSA card, you may disregard the card since those cards will no longer be active after December 31, 2019.

TASC HSA Card Reminders:

  • Participants may continue to use their TASC HSA cards until February 2, 2020 if they have a balance in their HSA and have electronically authorized the transfer of their HSA to ConnectYourCare.
  • Participants may continue to use their TASC HSA cards indefinitely if they have a balance in their HSA and have not electronically authorized the transfer of their HSA; however, participants will be responsible for their monthly administrative fees with TASC.

Additional FAQ’s have been added to the FSA & HSA Vendor Change page to help clarify this situation.

Update Your Address for Tax Form Distribution

Now is the time to make sure your address information is up-to-date for tax form distribution (such as the W-2 Form). Review and update your address as soon as possible.

Your 2019 W-2 Form will be mailed to the first available address on record in the following order: mailing, home or office address. Note: Active employees who have signed up for electronic-only W-2 Form delivery will not receive a mailed copy.

To ensure your W-2 Form and other tax forms are sent to your preferred address, follow these steps:

  1. Log in to the My UW Portal
  2. Launch the Personal Information tile to view your current mailing and/or home address. If the address you prefer for W-2 Form distribution is not displayed, update your mailing address by clicking on the Update my Personal Information link. Refer to change your personal details for instructions.
  3. If you want to update your office address, you must contact your human resources office.

An online copy of your W-2 Form will be available in late January in the portal Payroll Information tile.

Update your address by January 3, 2020 to guarantee that your address has been received in time for tax form distribution.

Source: UW-Shared Services, Service Operations

Monthly Pay Date for December Earnings is January 2, 2020

For UW employees who are paid on the 1st of each month, the monthly pay date for December 2019 earnings is Thursday, January 2, 2019. January 2 is the pay date because January 1 (New Year’s Day) is a Federal Reserve holiday.

When a pay date falls on a weekend or Federal Reserve holiday, the pay date is usually the previous business day. An exception to this is the monthly pay date that falls on New Year’s Day, January 1.

To avoid tax-related issues, the January 1 pay date for December earnings is paid in the new calendar year and must be the first “official banking business day” following the New Year’s holiday. The “official banking business day” is defined as a calendar day other than a Saturday, Sunday or a Federal Reserve holiday.

Source: UW-Shared Services, Service Operations

Wellness Incentives are Taxable

The State of Wisconsin extends financial incentives to employees through the Well Wisconsin employee wellness program. If you are covered under the State of Wisconsin Group Health Insurance program, you and your spouse (if covered under the State Group Health Insurance Program) were eligible for the $150 Well Wisconsin incentive if you submitted a health screening result to StayWell, completed the StayWell health risk assessment and a Well-Being activity by October 11, 2019. StayWell is the State of Wisconsin wellness program administrator. Additionally, depending on the health plan you are enrolled with, you may also be eligible for financial reimbursements for wellness related expenses such as gym memberships, fitness classes, the cost to participate in Community Support Agriculture (CSA) programs and rewards for participating in health or wellness programs or challenges.

Per guidance from the federal government and the Internal Revenue Service (IRS), the wellness incentive benefits are classified as taxable fringe benefits. This means that any financial incentive you receive from the program is taxable income for state and federal tax purposes.

What this means for you: 

  • Financial incentives will be reported as taxable wages and subject to applicable withholdings and taxes. You will see withholdings for all incentives issued in the current calendar year reflected on your August or December earnings statement. This will include incentives issued to your eligible family members. Withholding may include 7.65% for Social Security and Medicare if the employee is FICA Eligible and may include federal and state withholding, depending on the number of exemptions you claimed on your W-4. Note: Some individuals may have met their Social Security Tax maximum in 2019 $8,239.80 and therefore, they may only have Medicare Tax withheld.
  • Withholding may include 7.65% for Social Security and Medicare if the employee is FICA Eligible and may include federal and state withholding, depending on the number of exemptions you claimed on your W-4. Note: Some individuals may have met their Social Security Tax maximum in 2019 $8,239.80 and therefore, they may only have Medicare Tax withheld.
  • Federal regulations require your employer to receive financial data regarding incentives issued to employees and their covered family members. Your health information is protected by federal privacy regulations and is not shared with your employer.

Even with the federal government’s tax regulations, eligible employees and their spouses are able to receive substantial financial rewards for using the wellness incentives offered by the State of Wisconsin and participating health plans.

For questions about the $150 Well Wisconsin incentive contact StayWell at wellwisconsin@staywell.com. For questions about incentives provided by your health plan carrier, contact your health plan carrier directly. If you have additional questions, contact wellness@uwgb.edu or (920) 465-2203.

2020 Tax-Sheltered Annuity and Wisconsin Deferred Compensation Contribution Limits

IRS recently announced the 2020 contribution limits for the UW Tax-Sheltered Annuity (TSA) 403(b) Program and the Wisconsin Deferred Compensation (WDC) 457 Program.

In 2020, employees may contribute a basic maximum of $19,500 to the TSA Program. Employees age 50 and over can contribute an additional $6,500 for a total of $26,000. These same limits apply to WDC. Employees can contribute the maximum to both programs for a total of $39,000 (under age 50) or $52,000 (age 50 or older).

If you have 15 years or more of service with the UW System and have contributed less than an average of $5,000 per year over your UW System employment, you may have an additional “catch-up” opportunity with the TSA Program. Contact Human Resources for more information.

Both pre-tax and Roth (after-tax) contributions count towards the annual limits. Note: Individual Retirement Accounts (IRAs) are a type of retirement account separate from the TSA and WDC Programs and have separate limits.

To increase (or decrease) your TSA deduction for 2020, login to the My UW Portal. Launch the Benefits Information tile. On the bottom of the screen, click on “Update TSA Deductions” to make your change. You can also submit a TSA Salary Reduction Agreement to your human resources office.

If you are enrolling for the first time, you can use the EZ Enrollment Form or set your account up online (or paper application) with the provider(s) of your choice and then fill out the Salary Reduction Agreement.

For questions on the TSA program, visit the TSA website or contact Human Resources at (920) 465-2390 or payrollandbenefits@uwgb.edu.

To change your WDC contribution call the WDC office at (877) 457-9327 or access your account at the WDC website. The WDC website also has information about enrolling in the program. WDC changes must be made with Empower, the third-party WDC plan administrator.

 

 

Do you have a Health Care FSA or HSA balance?

The administrator of your Flexible Spending Account (FSA) and/or Health Savings Account (HSA) will change from TASC to ConnectYourCare (CYC) effective January 1, 2020.

Communications regarding this change began in August 2019. To review these communications, key dates and frequently asked questions, go to the FSA & HSA – 2020 Vendor Change webpage.

Health Care FSA

Carry over: If you have funds in your Health Care FSA on December 31, 2019, that are eligible to carry over into 2020, these funds WILL carry over to CYC. However, the funds will not be available for you to use until May 1, 2020. Make sure you plan accordingly. On/after May 1, 2020, you may use your CYC payment card to access your FSA carry over funds.

Your TASC FSA payment card will be inactivated on December 31, 2019. After December 31, 2019, you will need to submit a Reimbursement Claim Form to TASC to request reimbursement for expenses incurred in 2019. You have until March 31, 2020 to submit your 2019 expenses to TASC.

Health Savings Account

Your TASC HSA payment card will be inactivated on February 3, 2020 if you electronically consent to transfer your HSA balance from TASC to CYC. Funds will be transferred between February 4, 2020 and February 29, 2020. Make sure you plan accordingly. You can expect to access your HSA balance transferred from TASC to CYC by March 1, 2020.

You may still use your TASC HSA payment card through February 2, 2020 even if you have completed the electronic consent.

Your TASC HSA payment card will remain active if you do not electronically authorize the transfer of your account from TASC to CYC by December 31, 2019. However, if you transfer your funds after December 31, 2019 or leave your funds with TASC, you may incur monthly administrative fees and an account closure fee. To avoid these fees, complete the electronic consent to transfer your balance from TASC to CYC no later than December 31, 2019. Transfers that occur after December 31, 2019 must be initiated by the employee directly with TASC.

Resources: Additional information may be found on the FSA & HSA – 2020 Vendor Change webpage.

 

 

Maximizing Your UW TSA 403(b) Contribution for 2019

You may be aware that the UW TSA 403(b) Program is a great way to save additional money for retirement, but did you know that you can contribute up to $19,000 to your account in 2019? If you are age 50 or older at any time in 2019, you can also contribute a “catch-up” amount of $6,000 for a total of $25,000.

To see how much you have contributed to your TSA account in 2019, check your earnings statement. If you want to increase your contribution amount:
1. Log into the MyUW Portal. 
2. Launch the Benefit Information app.
3. On the bottom of the screen, click on “Update TSA Deductions” to make your change.

If you are paid monthly, you have one paycheck remaining for 2019 – November 29.

If you are paid biweekly, you have three paychecks remaining for 2019 – November 21, December 5, and December 19.

If you are not enrolled in the UW TSA 403(b) Program, and are interested in enrolling, visit the UW TSA 403(b) Program website to find out how to enroll and start saving for your future retirement.

If you have questions, contact Human Resources at (920) 465-2390 or payrollandbenefits@uwgb.edu.

Source: UW System Human Resources

Social Security and Medicare Taxes for 2020

Social Security wage base will rise to $137,700 in 2020 from $132,900 in 2019. This means that the first $137,700 of an employee’s taxable wages are subject to Social Security taxes. An employee and the UW will each pay 6.2% on taxable wages up to $137,700.

An employee’s entire taxable salary is subject to Medicare tax. Both the UW and the employee pay 1.45% on all taxable compensation. Further, any taxable wages that exceed $200,000 ($250,000 for married couples filing jointly) are subject to an additional 0.9% tax. There is no employer match for additional Medicare tax.

Source: UW-Shared Services, Service Operations